Business rates are a sham, and they are quietly putting an end to the hospitality business in Britain

Business rates are the main reason people are scared to be an entrepreneur. We pay tens of thousands of pounds every month in business rates at our London locations alone. And honestly, I have no idea where that money goes.  There is no visible return.  No help. Nothing you can point to and say that is what we pay for.

People would be very angry if council tax worked this way. At least you get something back when you pay council tax. You start losing money as soon as you open your doors, even though you haven't sold a single plate of food.

That is why business rates are a sham.  They punish the people we say we want to support.  They make risk impossible to carry.  They turn what should be an exciting leap into a financial cliff edge.

So fewer people leave stable jobs to start businesses.  Not because ambition is gone, but because the numbers don't add up anymore. The rent is high. It's expensive to hire people. Energy bills are brutal.  Then business rates arrive and finish the job.

This is changing the way hospitality works right now. It's no longer a good idea to open one restaurant, sign a long lease, and hope for the best. There is a lot at stake and very little room for mistakes.

That's why food halls are most appealing to small businesses. We don't put all the risks on the trader at Market Place Food Halls. We share the risks and rewards together. Less money spent on overhead. Models that can change. A chance to learn before you bet everything.

Unless the government acts on business rates, hundreds of restaurants, hotels, and pubs could close within the next year. Hospitality businesses face business rate increases that far exceed those imposed on online distribution warehouses, office buildings, and large supermarkets.

And this part is important. Food halls have quietly made starting a business possible again. A lot of our traders are opening their first real stores with us. These are skilled people who would never have taken the risk  before the new system. Not because they aren't good enough, but because the cost of failure is too high for them.

There are also new stresses. Consumer habits are changing and people are drinking and eating differently. Medications such as Ozempic and Mounjaro are part of that shift, and we’re seeing smaller appetites and more unfinished portions. As a result, food waste is becoming a growing consideration for operators. Hospitality has always evolved alongside customer needs, and this is another moment where restaurants must adapt thoughtfully to how people want to dine today.

Still, I have hope. But it is a cautious hope.

We grow steadily. We work with food traders, not against them. We make models based on what is real, not what we have historically done.

Food halls are not just a trend. They are a response. A more sustainable business model. A way to get by in a system where starting a business is too expensive.

Britain still needs business owners. As long as we keep pretending that business rates aren't a sham, it will continue to be too expensive for the next generation to even start a business.

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Blake Henderson is an Auckland-born hospitality leader who has built a progressive career across senior roles at Create Food, Grazing, and KERB, before joining Market Place Food Hall as Managing Director in 2022.

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